Crypto liquidations spiked as $480 million was wiped out on centralized exchanges over the past 24 hours
According to Coin Glass statistics, more than $1 billion worth of digital assets were liquidated on June 14, indicating the severity of the crypto meltdown.
Crypto Liquidations: Margin Calls For ETH, BTC, MakerDAO
Over the last 24 hours, centralized exchanges have lost almost $480 million. Margin calls on Ether totaled 42 percent, or $202 million, while BTC positions totaled $154.4 million.
On-chain liquidations have also increased, with 370 margin calls on MakerDAO alone pushing over 53 million DAI.
Over the last 30 days, however, $55.8 million in 401(k) crypto liquidations have occurred. Should the price of Ether fall below $1,009, an estimated $202 million worth of bets on top lending protocol Aave will be in jeopardy.
When the value of the collateral assets backing a leveraged position falls below the needed margin barrier to keep it open, it is referred to as a liquidation.
Institutional and ordinary investors have both been affected by the liquidations.
Three Arrows Capital Investments
Coinscreed reported on Wednesday that Three Arrows Capital had completed $400 million in investments and that hundreds of millions of dollars in additional loans were still at risk.
According to Danny Yuan, the head of trading at 8 Blocks Capital, a Three Arrows partner, the hedge fund has experienced huge liquidations. Yuan goes on to say that the company still has numerous assets on other platforms and that the assets should be frozen in order to reimburse creditors.
Three Arrows’ demise, according to Twitter analyst degentrading, might pose a systemic danger to the crypto market because it borrowed funds from many of the industry’s leading lenders. The analyst said. “The collapse of a major fund and a major lender will shrink overall credit in the system and lead to continued deleveraging.”
Celsius, the beleaguered centralized lender, has been fighting tooth and nail to avert its own nine-figure insolvency event.
Crypto Liquidations Price
Celsius has recently deposited considerable amounts of WBTC to cover a $231.4 million DAI loan it took out via the MakerDAO protocol.
Hundreds of millions of dollars appear to have been transferred from Celsius-controlled wallets to FTX. This happened on the same day that the company banned user withdrawals, according to Etherscan.
Celsius has since added approximately 8,200 BTC as collateral and repaid its MakerDAO holding of $47.1 million DAI.
According to Bobby Ong, co-founder of CoinGecko, opportunistic traders appear to have been seeking the liquidation prices for both Three Arrows Capital and Celsius during the drop.
“I find it rather surprising that several of these large crypto companies have completely mismanaged their finances… and did not anticipate the eventual bear market that will come,” Ong added.
